Hi, I have been looking for and bidding on several apartment buildings, mostly 6 units. I am currently bidding on a 6 unit with numbers that look like this;
Gross Income $ 61,200
Vacanty 5% $ 3,060
Heat & HW $ 2,400
Insurance $ 4,000
Taxes $ 3,262
Cold Water $ 960
Maintanance $ 2,500
Net Income $ 45,018
My question is, I have been looking into commercial financing, but most of the banks I have spoken to all state that they require a 25% down. I keep reading that many banks loan with 20%. I have approximately $105,000 that I can invest, but I would like to try and do more that 1 project at a time, therefor that 5% would make a big difference for me. Can you direct me to any institutions that loan commercailly for 20% down. Thanks in advance.

Daydomen:

" Can you direct me to any institutions that loan commercailly for 20% down. "

Well, not really.... Most commercial lenders are local, and frankly I do not even know where you live

My advice: Talk to more commercial banks in your area, you will find one. Also the operating expenses look a bit understated. A long time ago, someone told me to use 35% as a yardstick. This does not mean that your operating expenses could not be that amount. It just means make sure that the numbers are right.

Daydomen,
Your dilemna is not uncommon. It will be easier to finance properties with 1-4 units. If you can find these
type of properties there is 100% financing with a 720 mid score and 95% with a 680 score. If I can be of additional help call me.
Don Lepley
1-877-625-9515 ext 228
cell 615-414-1414
RBC Mortgage

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